Eaton Hudson’s Collegiate Asset Disposition Services
Prepares for Distressed College Market
Atlanta, GA – August 14, 2017 – Eaton Hudson Inc. (http://www.eatonhudson.com) sees a rise in demand for its Collegiate Asset Disposition Services (CADS) as public and private universities in the U.S. this year are expected to experience the slowest net tuition revenue growth and a tripling of institutional closings this year.
An analysis of schools that have recently shut down, or are facing an imminent closure, shows that certain kinds of private colleges, such as small, rural colleges that serve comparatively small communities, appear to be facing the most difficult struggles to recruit enough students to stay afloat. Declining enrollments – fueled by affordability and the heightened attention on the student loan debt issue, and increased competition from online competitors for the most part to blame.
Even the smallest of institution closings have complicated and often overlooked steps to take, paying off creditors, transferring endowments, informing regulators and the selling of assets. As a result, presidents and trustees can be uncertain how to proceed.
Eaton Hudson recently partnered with Hilco Fixture Finders to run St. Joseph’s College, a Catholic Liberal arts college in Rensselaer, Indiana.
“Unfortunately, this is just the latest one in a string to come, particularly among these,” said Jim Schaye, CEO of Eaton Hudson.
We’re not expecting wholesale closures across the sector but a rise of closures of smaller, private liberal arts schools that are largely dependent on tuition and can’t rely on large endowments. These colleges for the most part have expanded tuition discounts to draw in more students, and for small private schools that rely on tuition for revenue, not endowments, this discount rate is financially unsustainable.”
Moody’s Investment Services predicted closures to triple in with as many as 15 institutions a year to shut their doors for good by 2017.